sets
i area /a1,a2/;
alias(i,j);
parameters
lambda(i)
/a1 0.3
 a2 0.7/
scalar mu /0.4/
sigma /5/;
Table T(i,j)
    a1  a2
a1  1   2.1
a2  2.1  1;
variables
y(i)
g(i)
w(i)
omega(i);
Positive variables y,g,w,omega;
Equations
gdp(i)
PriInx(j)
wage(j)
RealWage(i);
gdp(i).. y(i)=e=mu*lambda(i)*w(i)+(1-mu)/2;
PriInx(j).. g(j)=e=(sum(i,lambda(i)*(w(i)*T(i,j))**(1-sigma)))**(1/(1-sigma));
wage(j).. w(j)=e=(sum(i,y(i)*T(i,j)**(1-sigma)*g(i)**(sigma-1)))**(1/sigma);
RealWage(i)..   omega(i)=e=w(i)*g(i)**(-mu);

w.l(i)=1;
g.l(i)=1;
model CorePeri /all/;
solve CorePeri using mcp;

display omega.l;
